Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tam-jai-international-co-ltd" target="_blank" data-smartkarma-citation="entities:34227:1" rel="noopener">Tam Jai International (2217 HK)</a>, an operator of Asia noodle specialty restaurants, is currently <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0204/2025020400099.pdf" target="_blank" rel="noopener">suspended</a> pursuant to the Takeovers Code.</li>
<li>On the 13th November 2024, Tam Jai announced <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/1113/2024111301386.pdf" target="_blank" rel="noopener">1H25 net profit</a> - to 30th September 2024 - declined 55.8% yoy to HK$36.1mn, its lowest six-month tally since listing. </li>
<li>
<a href="https://www.smartkarma.com/entities/toridoll-holdings-corporation" target="_blank" data-smartkarma-citation="entities:8193:1" rel="noopener">Toridoll Holdings Corporation (3397 JP)</a> controls 74.61% of Tam Jai. Expect a Scheme to unfold. An Offer price around HK$1.50/share would be welcome. That's probably a stretch.</li>
</ul>



Tam Jai International (2217 HK), an operator of Asia noodle specialty restaurants, is currently suspended pursuant to the Takeovers Code.
On the 13th November 2024, Tam Jai announced 1H25 net profit - to 30th September 2024 - declined 55.8% yoy to HK$36.1mn, its lowest six-month tally since listing. 

Toridoll Holdings Corporation (3397 JP) controls 74.61% of Tam Jai. Expect a Scheme to unfold. An Offer price around HK$1.50/share would be welcome. That's probably a stretch.


Tam Jai (2217 HK) Suspended: Expect Toridoll (3397 JP) To Make An Offer

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Thematic (Sector/Industry)

<ul>
<li>Following on from our last HK piece, we take a closer look at the tech sector</li>
<li>While the overall HSTECH index provides a good risk-reward, some</li>
<li>Individual E-commerce &amp; software names offer much more upside than  downside</li>
</ul>


Following on from our last HK piece, we take a closer look at the tech sector
While the overall HSTECH index provides a good risk-reward, some
Individual E-commerce &amp; software names offer much more upside than  downside


HSTECH Index. Identifying Individual Names with Greater Potential Upside

<ul>
<li>Back on the 27th December, <a href="https://www.smartkarma.com/entities/vesync" target="_blank" data-smartkarma-citation="entities:31067:1" rel="noopener">Vesync (2148 HK)</a>, a manufacturer of small home appliances, <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/1227/2024122701148.pdf" target="_blank" rel="noopener">announced</a> an Offer, by way of a Scheme, from the Yang family controlling ~69.04% of Vesync. </li>
<li>The Cancellation Price of $5.60/share, declared final, was a 33.3% premium to undisturbed, and above the 2020 IPO price of HK$5.52/share.</li>
<li>The US anti-trust condition has now been <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0128/2025012800338.pdf" target="_blank" rel="noopener">fulfilled</a>. The Scheme Doc dispatch has been extended to the 11 April. I estimate payment under the Offer late May. </li>
</ul>


Back on the 27th December, Vesync (2148 HK), a manufacturer of small home appliances, announced an Offer, by way of a Scheme, from the Yang family controlling ~69.04% of Vesync. 
The Cancellation Price of $5.60/share, declared final, was a 33.3% premium to undisturbed, and above the 2020 IPO price of HK$5.52/share.
The US anti-trust condition has now been fulfilled. The Scheme Doc dispatch has been extended to the 11 April. I estimate payment under the Offer late May. 


Vesync (2148 HK): Trading Wide Ahead Of The Scheme Vote

<ul>
<li>On the <a href="https://announcements.asx.com.au/asxpdf/20241125/pdf/06bsnwy06nspdv.pdf" target="_blank" rel="noopener">25th November</a>, online trading player <a href="https://www.smartkarma.com/entities/selfwealth-ltd" target="_blank" data-smartkarma-citation="entities:30690:1" rel="noopener">SelfWealth Ltd (SWF AU)</a> entered into a SID with <a href="https://www.smartkarma.com/entities/bell-financial-group-ltd" target="_blank" data-smartkarma-citation="entities:7251:1" rel="noopener">Bell Financial (BFG AU)</a> at A$0.25/share after outbidding AxiCorp Financial Services.</li>
<li>Now Singaporean-based wealth manager Svava has tabled a non-binding A$0.28/share Offer, in cash, by way of a Scheme. Svava also holds an effective blocking stake - 18.8% of shares out. </li>
<li>SelfWealth said Svava's proposal "while indicative and non-binding, could be reasonably considered to become a superior proposal." BFG needs to step up. </li>
</ul>


On the 25th November, online trading player SelfWealth Ltd (SWF AU) entered into a SID with Bell Financial (BFG AU) at A$0.25/share after outbidding AxiCorp Financial Services.
Now Singaporean-based wealth manager Svava has tabled a non-binding A$0.28/share Offer, in cash, by way of a Scheme. Svava also holds an effective blocking stake - 18.8% of shares out. 
SelfWealth said Svava's proposal "while indicative and non-binding, could be reasonably considered to become a superior proposal." BFG needs to step up. 


SelfWealth (SWF AU): Peter Thiel-Backed Svava Crashes Bell's Offer

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Equity Bottom-Up

Sunny Optical Technology Group / Equity Bottom-Up

<ul>
<li>HK Alpha Portfolio returned -1.29% in December and outperformed the benchmark by 0.34%. The portfolio has outperformed Hong Kong indexes by 7.93% to 9.64% since its inception on 10/01/24.  </li>
<li> About 75% of the portfolio's excess returns have been from alpha generation. The portfolio had no exposure to Real Estate, Energy or Materials. </li>
<li>At month-end we sold <a href="https://www.smartkarma.com/entities/china-cinda-asset-management-co-ltd" target="_blank" data-smartkarma-citation="entities:372:1" rel="noopener">China Cinda Asset Management (1359 HK)</a> , <a href="https://www.smartkarma.com/entities/citic-ltd" target="_blank" data-smartkarma-citation="entities:20590:1" rel="noopener">Citic Ltd (267 HK)</a> , <a href="https://www.smartkarma.com/entities/china-galaxy-securities-co-h" target="_blank" data-smartkarma-citation="entities:165:1" rel="noopener">China Galaxy Securities (H) (6881 HK)</a> and <a href="https://www.smartkarma.com/entities/gds-holdings-ltd" target="_blank" data-smartkarma-citation="entities:32157:1" rel="noopener">GDS Holdings (9698 HK)</a> .  </li>
</ul>


HK Alpha Portfolio returned -1.29% in December and outperformed the benchmark by 0.34%. The portfolio has outperformed Hong Kong indexes by 7.93% to 9.64% since its inception on 10/01/24.  
 About 75% of the portfolio's excess returns have been from alpha generation. The portfolio had no exposure to Real Estate, Energy or Materials.  
At month-end we sold China Cinda Asset Management (1359 HK) , Citic Ltd (267 HK) , China Galaxy Securities (H) (6881 HK) and GDS Holdings (9698 HK) .  


Hong Kong

Sun Art Retail Group Ltd. operates hypermarkets.  The Company retails food and offers amenities such as restaurants, automated teller machines, pharmacies and dry cleaners.

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Sun Art Retail (6808 HK)

Tam Jai (2217 HK) Suspended: Expect Toridoll (3397 JP) To Make An Offer

Tam Jai, an operator of Asia noodle restaurants, is suspended pursuant to the Code. Toridoll (3397 JP) controls 74.61%. Expect a Scheme. An Offer...

David Blennerhassett

HSTECH Index. Identifying Individual Names with Greater Potential Upside

The initial market reaction to the Deepseek news is to bid up Chinese tech names, both platform and semiconductor-related. The tariff newsflow will...

Rikki Malik

Vesync (2148 HK): Trading Wide Ahead Of The Scheme Vote

This is done. IF payment late-May, I'd pay up to HK$5.35/share for a gross/annualised return of 4.5%/15%. If small, illiquid arbs are your bent,...

David Blennerhassett

SelfWealth (SWF AU): Peter Thiel-Backed Svava Crashes Bell's Offer

We have a (more than likely) competing bidding situation. If small, illiquid arbs are your bent, look to enter around Svava's non-binding terms and...

David Blennerhassett

HONG KONG ALPHA PORTFOLIO (January 2025)

Hong Kong Alpha portfolio lost 1.29% in January and outperformed its benchmark. We sold GDS, Citic, Cinda and China Galaxy Securities. We added...

David Mudd

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